Coti plans expansion to Ethereum ecosystem with Layer 2 network

Coti, a blockchain developer known for operating projects on Cardano and its own network, is set to introduce an Ethereum Layer 2 as part of an upgrade scheduled for next year.`

The strategic move involves its flagship blockchain, which uses Directed Acyclic Graph (DAG) technology, evolving into an Ethereum Layer 2 that supports native dapps.

Coti’s Ethereum Layer 2 network will have an emphasis on user privacy for dapps while drawing security from the Ethereum mainnet.

"What changes is that Coti’s infrastructure, formerly a proprietary DAG-based protocol, becomes an EVM-compatible, privacy-centric Layer 2 on Ethereum," a Coti spokesperson told The Block.

The development network (devnet) for Coti V2 is scheduled for the second quarter of 2024, followed by a testnet and the anticipated mainnet launch by the end of the year.

Coti V2 will employ cryptography to preserve transaction privacy. It will implement a method known as Garbled Circuits, presented as an alternative to commonly used privacy-preserving solutions based on zero-knowledge techniques.

Coti's Cardano presence

Coti operates Djed, a decentralized stablecoin on Cardano, developed in collaboration with Input Output, the network’s primary development firm. It also runs Ada Pay, a payment service on the same network.

The team at Coti confirmed that it would continue to work on Cardano-based projects. “Coti’s work with Cardano continues. We have a project built there called Djed, and that will continue to remain on Cardano,” it said.